Sotetsu Holdings' half-year profit drops, full-year outlook adjusted

Sotetsu Holdings reported a 16.2% decrease in profit attributable to owners of parent for the first half of fiscal year 2026, totaling 12,779 million yen, down from 15,253 million yen in the previous year. Operating revenue also declined by 2.4% to 144,907 million yen. This downturn was primarily driven by a decrease in condominium and house sales within the Real Estate Sales segment, despite robust lodging demand in the Hotel segment.

In response, Sotetsu Holdings revised its full-year forecast for fiscal year 2026. While the company anticipates a 6.8% increase in operating revenue to 312,000 million yen compared to the previous fiscal year, operating profit is projected to decline by 6.7% to 35,300 million yen. Profit attributable to owners of parent is expected to remain stable at 22,500 million yen.

The revised full-year outlook is influenced by an expected rise in room rates in the Hotel segment. However, this is offset by an anticipated decline in Real Estate Sales revenue due to a high-profit property sale in the prior fiscal year and significant repairs planned for the Real Estate Leasing segment. The company also announced an interim dividend of 30.00 yen per share, with a projected year-end dividend of 35.00 yen, totaling 65.00 yen for the fiscal year.